THE chief executive of Finance Wales Colin Mitten yesterday announced his resignation.

THE chief executive of Finance Wales Colin Mitten yesterday announced his resignation.

Mr Mitten, who took up his role in 2001, will stand down with effect from March 22 to pursue business interests in New Zealand where he has acquired a manufacturing business and his family are based.

An investigation into Finance Wales, the development bank subsidiary of the WDA, also showed yesterday that it had made another investment into a English-based high technology venture.

As revealed in The Western Mail last summer Finance Wales invested in Gatwick- based Eneco on the proviso that its relocated its entire operation to Wales.

However, Eneco, which specialises in alternative vehicle fuel technology, has still to relocate to Wales, more than a year after the investment was made.

The latest revelation shows that Finance Wales has also backed another English-based company, Medipure, which plans to be operational from a new HQ in Denbighshire this May.

The investment in Medipure has come to light following the recent completion of an investigation into all of Finance Wales's 600 investments.

The inquiry was instigated by the Welsh Development Agency's chief executive Graham Hawker last summer.

An insider said yesterday, "After details of the Eneco investment came to light Graham asked Finance Wales if there were any other investments of that kind and he was told no.

"However, when the Grant Thornton investigation showed Finance Wales had invested in a Cheshire-based company he was angry to say the least."

At the WDA's corporate headquarters in Cardiff yesterday Mr Hawker said, "After learning of the Eneco investment I asked Finance Wales if there were any other investments outside of Wales and I was told no.

"The intentions of Finance Wales were well meaning in trying to get high technology companies to relocate to Wales.

"However, their mistake was to put cash into them before they had moved here.

"As a result the policy has been changed and Finance Wales will no longer be allowed to invest in any company until they have located here.

"It was a case of Finance Wales being a little bit too enthusiastic. Colin has done a great job in getting Finance Wales off the ground and moving it forward and I wish him all the best for the future."

Finance Wales's had a mezzanine and equity investment in Medipure, one of 69 similar funding arrangements it has made.

Finance Wales said the funding was made to enable Medipure to acquire land in Denbighshire to build a new headquarters. The company specialises in clean technologies for medics.

The WDA said it is expected that Medipure will sign a building contract for its new Denbighshire premises this week, with a view to being on site in May. Mr Hawker said he was confident Medipure would prove to be a real asset for the Welsh economy.